Which of the following statements is FALSE?
A)IFRS defines a business combination as a transaction or other event in which an acquirer obtains control of one or more businesses.
B)IFRS 3 applies only to combinations involving 'businesses', thereby excluding other exchanges of assets between entities.
C)A business generally must be capable of providing a return to the owners, and would always involve entities whose activities have inputs, processes and outputs.
D)IFRS 3 excludes certain combinations of businesses from its scope, including those established as joint ventures or under common control.

Question

Quizplus · Accepted Answer

The statement "A business generally must be capable of providing a return to the owners, and would always involve entities whose activities have inputs, processes and outputs" is not completely accurate. While a business aims to provide a return to the owners, it is not necessary that all entities with inputs, processes, and outputs are considered as businesses. For example, a charitable organization or a government entity may have inputs, processes, and outputs, but they may not be considered as businesses.

Which of the Following Statements Is FALSE